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FBN Insurance to launch takeover bid for Oasis

By on July 5, 2014

FBN Insurance, a subsidiary of FBN Holdings Plc, has said it will launch a bid next week to buy out the 28.8 per cent minority stake in Oasis Insurance that it does not already own, in a deal valued at N1.03 billion.

FBN Insurance, jointly owned by FBN Holdings and South Africa’s Sanlam, had acquired a 71.2 per cent stake in the motor and fire insurer in February.
It will offer 55 kobo per share to buy the remaining N1.87 billion shares, Reuters quoted the firm to have said.

The buy-out process opens on July 10 and will last for three weeks, after which FBN Insurance intends to delist Oasis from the Nigerian Stock Exchange, FBN Insurance said.

Shares in Oasis were trading at 50 kobo per share yesterday giving the company a market capitalisation of N4 billion.

Sanlam has said FBN Insurance’s acquisition of the 71.2 percent Oasis stake gave it an entry point into the general insurance sector in Nigeria, Africa’s most populous nation.

FBN Insurance commenced business operations in 2010 and opened branches in Abuja and Port Harcourt within the 2011 financial year.

The company generated total income of N1.4 billion during its first year of operations, with over 90 per cent representing premium income and the balance from investment income. The total asset of the company was over N4 billion, while the shareholders’ fund and share capital stood at over N2.9 billion and N3.48 billion respectively.

 

 

[This Day]